New Delhi: India ranks third globally in terms of number of family owned businesses with 111 companies of USD 839 billion total market capitalisation, followed closely after China with 159 firms and the United States with 121 firms, says a report.

According to the 'Credit Suisse Family 1000 in 2018' report, published by the Credit Suisse Research Institute (CSRI), in terms of number of family owned businesses, within the non-Japan Asian region, China, India and Hong Kong dominate the list.

These three jurisdictions together comprise around 65 percent of the non-Japan Asian section of the CSRI's database, and has a combined market capitalisation of USD 2.85 trillion (or 71 percent) of the market share.

Korea came in fourth place, with 43 companies (USD 434.1 billion market capitalisation), followed by Indonesia, Malaysia, the Philippines and Thailand, each with 26 companies.

The report covered 11 markets in the Non-Japan Asian region, which continue to dominate and represent a 53 percent share of the universe, with a total market capitalisation of over USD 4 trillion.

The report further noted that in 2017 alone, Non-Japan-Asia-based family-owned companies generated 25.63 percent greater cash flow return on investment (CFROI) than their non-family owned counterparts, and delivered a 4.2 percent outperformance in annual average share price return since 2006.

"This year we find family-owned businesses are continuing to outperform their peers in every region, every sector, whatever their size. We believe this is down to the longer-term outlook of family-owned businesses relying less on external funding and investing more in research and development," said Eugne Klerk, Head Analyst of Thematic Investments at Credit Suisse and the report's lead author.

Indian family-owned companies generated a 13.9 percent annual average share price return since 2006, compared to 6 percent recorded by their non-family-owned peers, the report said.

Further, out of the top 50 most profitable companies globally, 24 were from Asia, with a total market capitalisation of USD 748 billion. The list included 12 Indian family-owned companies with a total market capitalisation of USD 192.2 billion.

Moreover, in Non-Japan Asia, more than 50 percent of the top 30 best performing companies are from India, followed by one-third from China. Malaysia occupies third place with three companies, while Korea and Indonesia each have one, the report added.